1. What is the Federal Pay Increase?

The 2% federal pay increase for 2025 is a proposed adjustment to federal employee salaries to account for cost of living changes. This calculator helps estimate the new salary after this adjustment.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Old Pay — Current salary before the increase
• 1.02 — Represents a 2% increase (100% + 2% = 102% or 1.02)

Explanation: The calculation multiplies the current salary by 1.02 to show the new salary after the 2% increase.

3. Importance of Pay Increase Calculation

Details: Understanding pay increases helps federal employees with financial planning, budgeting, and assessing the impact of cost-of-living adjustments on their take-home pay.

4. Using the Calculator

Tips: Enter your current salary in USD. The calculator will automatically compute your new salary after the 2% increase.

5. Frequently Asked Questions (FAQ)

Q1: Is the 2% increase guaranteed for 2025?
A: The 2% figure is based on current proposals and may change before final implementation.

Q2: Does this increase apply to all federal employees?
A: Most general schedule employees would receive this increase, but some special categories may have different adjustments.

Q3: When would the pay increase take effect?
A: Federal pay increases typically begin with the first full pay period in January.

Q4: Are locality pay adjustments included in this calculation?
A: No, this calculator only shows the base pay increase. Locality pay would be calculated separately on the increased base pay.

Q5: How does this compare to previous years' increases?
A: The 2% proposed increase for 2025 is slightly lower than some previous years' adjustments which have ranged from 2.2% to 3.1%.